Alibaba, the China-based e-commerce company reportedly planning to raise up to $15bn when it goes public later this year, has purchased a 10.35% stake in Singapore Post for S$312.5m (US$249m).
Initially established as Singapore’s postal service, SingPost has since grown into a more diversified company that incorporates financial services and an internet portal. It is of strategic interest to Alibaba because so much of the Chinese company’s business is reliant on package delivery.
Alibaba formed the China Smart Logistic Network with eight other companies in 2013 in order to make its deliveries faster and easier, and the SingPost stake would be part of efforts to expand its logistics reach into Southeast Asia.
Alibaba launched a Southeast Asian version of its flagship site, Taobao, in 2013 and could seek to form a joint venture with SingPost as it expands across the continent.
“We are excited to collaborate with SingPost and leverage SingPost’s strong delivery networks and end-to-end e-commerce logistics solutions to facilitate international e-commerce,” said Daniel Zhang, chief operating officer of Alibaba.
“Through this collaboration, we hope to create concrete benefits for our overseas buyers and sellers by enhancing the user experience and providing greater access to a suite of international e-commerce logistics solutions and products.”
– Photo courtesy of Singapore Post Limited